A Shanghai terminal will begin receiving LNG (liquefied natural
gas) supply from Malaysia as of 2009 with the annual delivery no
less than 1.1 million tons, said the Shenergy Group here on
Monday.
According to a contract with the term of 25 years, the supply
will grow year-by-year to three million tons in 2012 and then the
delivery will be kept stable.
The contract, inked by the Shanghai LNG Co. Ltd and a subsidiary
of Petronas, Malaysia's national petroleum corporation, is so far
the largest trade contract between the two countries, marking the
beginning of the energy cooperation.
Shanghai LNG Co. Ltd is a joint-venture co-funded by the
Shenergy Group and a wholly-owned subsidiary of CNOOC (China
National Offshore Oil Corporation), with Shenergy taking 55 percent
of the shares.
The Malaysian company draws its natural gas supplies from the
Bintulu region, one of the world largest LNG production base in
east Malaysia. The company boasts an annual LNG output of 23
million tons and supply mainly to the countries like Japan and the
Republic of Korea.
The terminal for the Shanghai LNG project is located in the
Yangshan Deepwater Port, Shanghai International Shipping
Center.
(Xinhua News Agency October 30, 2006)